U.S. bonds hit markets for the first time in decades

National

The U.S. Treasury has a solution to the deficit, other than just printing more money. It is bringing back a bond it hasn’t been issued since 1986.

The Treasury has announced it will issue a new 20-year bond in the first half of 2020.

Treasury Secretary Steven Mnuchin surprised investors with the announcement last week. The U.S. deficit surpassed one $1 trillion in 2019 for the first time since 2012.

Mnuchin says bonds are a way to finance the government at the least possible cost to taxpayers over time.

The new 20-year bond is likely to appeal to pension funds or insurance companies.

Industry analysts say the treasury needs a new source of financing to meet future deficit needs.

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